SHANGHAI, Feb. 16 (SMM) – A flood of negative news dragged SHFE 1504 aluminum contract below RMB 13,000/mt. Trading volumes of the most active contract did not fall sharply, though, due to pre-holiday caution. In China’s spot market, supply and demand diminished as the Chinese New Year holiday is nearing. Large spot discounts lured some traders into buying for hedging between physical and futures market. Sellers held back goods later in the week, preventing spot discounts from widening. 

 

The most active SHFE aluminum contract is expected to trade between RMB 12,900-13,100/mt before the Chinese holiday. In China’s spot market, trading will come to a virtual standstill with the approaching of week-long holiday. Spot discounts are expected between MB 100-140/mt over the SHFE 1503 aluminum contract.